Power plants, non-regulated sector consumers agree to substitute imported coal with CIL supply


NEW DELHI: Power plants located in the southern part of the country and non-regulated sector (NRS) consumers, including steel and cement, of Mahanadi Coalfields Ltd (MCL) have agreed to substitute imported coal with the dry-fuel produced by the Coal India subsidiary.

The development assumes significance in the wake of government’s thrust on reducing coal import dependency of the country under the ‘Aatmanirbhar Bharat’ initiative.

Southern India power plants and NRS consumers, who are importing coal at present, have been approached based on the logic that MCL’s coal is quite comparable with imported coal as per Gross Calorific Value land cost analysis, the Coal India (CIL) arm said in a report.

“They have agreed for import substitution with MCL coal,” it said.

Also in near future, the vehicles being run on diesel and petrol will be replaced by electric-driven vehicle and this will significantly reduce the requirement of importing oil and save a lot of forex, it said.

CIL has also introduced a new category of spot e-auction for importers only and aimed at replacing 150 million tonnes of fuel sourced from abroad with domestic supply.

The coal procured under the “special spot e-auction scheme 2020 for import substitution” will be for use within the country .

“This move is in a bid to attain the governments thrust on reducing coal import dependency of the country under the Aatmanirbhar plan. Coal imports of 150 million tonne can be replaced with this new scheme,” a Coal India official had said.

The new programme is an addition to its existing four categories of e-auctions.

CIL has taken up a new marketing strategy to substitute imported coal with more domestic supplies, the official had said.

The Maharatna PSU has identified domestic coal-based power plants and manufacturers of sponge iron, cement, fertilisers, steel and others, who are importing coal, as its potential customers

These segments of customers had imported around 150 million tonne of coal during the last fiscal, he had said.

Indian buyers including traders who imported coal at any point of time in the current fiscal or in the previous two financial years are eligible for participating in this new version of e-auction.

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